Conn. Nonprofits Face 'Perfect Storm,' According To Head Of Statewide Association
The head of a statewide association of nonprofits is calling on Connecticut officials to increase payments to the organizations.
Gian-Carl Casa said right now nonprofits of all types are facing what he describes as “a perfect storm.”
“We have demand going up. We have contributions going down because of federal tax law changes. And because the state really has had economic troubles for the good part of the last decade, we have had cuts in assistance to the organizations that provide the services,” said Casa, president of the Connecticut Community Nonprofit Alliance.
He said smaller nonprofits, such as community-based organizations and arts and cultural institutions, rely heavily on individual donors. But larger nonprofits that are contracted by the state to provide services face different challenges.
“Those that provide services for substance abuse treatment, for behavioral health, for intellectual or developmental disabilities -- contributions may make up no more than 1% or 2% of their total budgets,” said Casa. “People will lose services unless the state government steps up and starts compensating them for more of the costs for the services they provide.”
With Connecticut running surpluses, he’s calling on the state to make up for cutbacks in the past.
But Gov. Ned Lamont has said the state should not dip into its budget reserve and instead has urged wealthy donors to step up their giving.